Financial data for redstone company for last year appear below: redstone company statements of financial position beginning balance
Financial data for Redstone Company for the last year is presented below, including the company's statements of financial position, beginning balance, and ending balance.
Statements of Financial Position:
Assets: - Cash: $120,000 (beginning) / $160,000 (ending) - Accounts Receivable: $110,000 / $100,000 - Inventory: $50,000 / $60,000 - Plant and Equipment (net): $180,000 / $160,000 - Investment in Balsam Company: $50,000 / $60,000 - Land (undeveloped): $120,000 / $120,000
Total Assets: $630,000 (beginning) / $660,000 (ending)
Liabilities and Owners’ Equity: - Accounts Payable: $70,000 / $90,000 - Long-term Debt: $500,000 / $500,000 - Owners’ Equity: $60,000 / $70,000
Total Liabilities and Owners’ Equity: $630,000 (beginning) / $660,000 (ending)
Income Statement: - Sales: $1,222,000 - Less: Operating Expenses: $1,099,800 - Net Operating Income: $122,200 - Less: Interest and Taxes: - Interest Expense: $60,000 - Tax Expense: $20,000 - Total: $80,000 - Net Income: $42,200
The company paid dividends of $32,200 last year. The "Investment in Balsam Company" on the statement of financial position represents an investment in the stock of another company.
Required: a. Compute the company's margin, turnover, and return on investment for last year. Please round your intermediate calculations and final answers to two decimal places.
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